We have had several contracts of this type involving Eastern Europe
& third world countries.  In addition to the issues that have been
pointed out problems can occur due to high inflation levels, poor
communications,  obtaining authorised signatures on returns, &
money just "vanishing".

The risks of becoming involved need to be balanced against the
returns.  In order to minimise risks we try to keep as tight a control of
expenditure as possible when we are the lead partner.  At times this
has involved purchases of equipment made by ourselves & then
shipped rather than cash transfers,  using agencies such British
Council as partners to pay bills overseas,  having partner staff
working at our institution for a period of time to establish personel
contacts, etc.  However, your ability to "manage" the situation is
dependent on the rules of the scheme you operate under.  Normally
we have found CEC, etc to be sympathetic to our suggestions.

Audit problems?  Well there was the one of a Landrover bought in
Africa on travel & subsistence account (no capital was allowed)...
Regards,

Bob Smailes
Director of Research & Innovation Services
University of Dundee
Scotland
PH11 8DR

Tel: (+44) 0382 25468
Fax: (+44) 0382 202178